Subway was sold for billions of dollars in one of history’s most significant fast-food acquisitions. Private equity firm Roark Capital has acquired Subway. Roark Capital is a nearly 60-year-old family-owned enterprise with other sandwich shops in its portfolio.
Thursday’s press release announced that the sandwich company had received an offer from Roark. According to the Wall Street Journal, Roark offered $9.6 billion for the sale, initially listed for $10 billion in February.
According to Reuters, Subway must achieve cash flow milestones within two or more years of the deal’s completion to pay the $8.95 billion purchase price. The earn-out is not included in the agreement.
CNN reports that Roark’s acquisition is a significant event in the fast food industry. The company’s culinary portfolio includes investments in Arby’s, Auntie Anne’s, Buffalo Wild Wings, Carvel, Sonic, and many other brands.
Subway asserts that it will continue prioritizing sales growth, menu innovation, restaurant modernization, enhancement of the visitor experience, and international expansion.
Subway has recently lost market share due to intense competition from restaurants offering a wider variety of menu items and contemporary store designs.
According to Reuters, Subway’s same-store sales increased by 9.85% during the first half of 2023.